Financial markets have grown increasingly susceptible to sharp

unpredictable swings driven by geopolitical tensions

policy shifts

technological disruptions

and sentiment contagion. For investors navigating such turbulence

conventional approaches—often rooted in static asset allocation or backward-looking risk metrics—prove inadequate. This review synthesizes insights from behavioral finance

quantitative risk modeling

corporate finance

and portfolio theory to examine how rational investment decisions can be made under extreme uncertainty. Rather than treating risk management and investment strategy as separate domains

we argue for their integration: effective volatility navigation requires simultaneous attention to downside protection

liquidity buffers

behavioral discipline

and strategic flexibility. Drawing on recent empirical studies and theoretical advances

we identify key decision-making pitfalls

evaluate contemporary risk quantification tools

and propose an adaptive framework that aligns financing constraints with investment horizons. The review concludes by highlighting unresolved tensions—particularly the trade-off between algorithmic objectivity and human judgment—and outlines avenues for future research that bridges academic rigor with practitioner applicability.